Convoy Global Holdings (1019) has confirmed it is selling its holding in First Credit Finance Group (8215), which could add a loss of as much as HK$324 million to Convoy.

The 1.07 billion shares, which amount to 29.5 percent of the total number of shares First Credit issued, were sold for HK$61.01 million. That represents HK$0.057 per share, 47.2 percent less than the price of the financial services provider before it was suspended on November 24 last year.

"The board considers that the closing price of the First Credit Shares prior to the suspension cannot reflect the financial condition and valuation of First Credit," Convoy said in a filing to the Stock Exchange of Hong Kong. The final price was determined by both the vendor and purchaser after a financial adviser valued First Credit at HK$58 million.

The buyer is Xiao Guoliang, whose background is unknown.

Convoy made the decision after considering First Credit's business overlaps with the group, could bring no synergies and the investment is not in line with the group's overall business strategies. It expects to improve its liquidity after selling the unit. Convoy will use the proceeds for general operations and other investment opportunities. Trading of Convoy's shares has also been suspended since December 7 2017 as its management was under corruption investigation.